Form 4: Paramount Group COO, CFO, and Treasurer Wilbur N. Paes Reports Acquisition of LTIP Units

Wilbur N. Paes, COO, CFO, and Treasurer of Paramount Group, Inc., reports the acquisition of 81,050 LTIP Units based on performance achievement.

Summary

• Wilbur N. Paes, the COO, CFO, and Treasurer of Paramount Group, Inc. (PGRE), filed a Form 4 on February 11, 2025, reporting a transaction.
• The transaction involves the acquisition of 81,050 LTIP Units on February 7, 2025, due to the achievement of performance hurdles under the 2022 Performance Program.
• 40,525 LTIP Units vested on February 7, 2025, and the remaining 40,525 LTIP Units will vest on December 31, 2025.
• Vested LTIP Units can be converted into OP Units, which can then be redeemed for cash or PGRE common stock.

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive. The acquisition of LTIP units suggests that performance targets were met, which is a positive indicator. The filing itself is a routine disclosure.

Positives

• The acquisition of LTIP Units indicates that performance hurdles were met, which could be viewed positively.

Future Outlook

The remaining 40,525 LTIP units will vest on December 31, 2025, and vested LTIP Units can be converted into OP Units and redeemed for cash or common stock.

Industry Context

This filing is a routine disclosure related to executive compensation and is common in publicly traded companies. It provides transparency into how executives are incentivized and rewarded based on company performance.

Comparison to Industry Standards

• LTIP (Long-Term Incentive Plan) units are a common form of executive compensation in the real estate industry, aligning management's interests with those of shareholders by rewarding long-term performance.
• Similar to other REITs (Real Estate Investment Trusts) such as Boston Properties (BXP) or Vornado Realty Trust (VNO), Paramount Group uses equity-based compensation to incentivize its executives.
• The vesting schedule and conversion terms of the LTIP units are typical for such plans, with vesting tied to performance and continued employment.

Stakeholder Impact

• The vesting of LTIP units aligns management's interests with those of shareholders, potentially driving long-term value creation.
• The transaction has no immediate impact on employees, customers, suppliers, or creditors.

Key Dates

Keywords

LTIP Units, Paramount Group, Form 4, Beneficial Ownership, PGRE, Wilbur N. Paes, OP Units, Vesting